Banking objective : making spread as wide as possible while maintaining acceptable aset quantity

and liquidity. Indo has high interest margin (compare in region or global) karena indo se-risky itu.

Key ratio for bank :

Aset quality

 NPL (non performing/total loans)

 Loan loss coverage (provision/TNPL)
 Cost of kredit (provision expense/total gross loan)
 Special mention rato (special mention loan/total loans)

Profitability rasio

 ROA (INI/TA) biasanya ga dibagi total pas akhir, tapi diaverage assetnya tahun2 lalu
 NIM (Net interest Income/earning assets) NII = yang ada interest nya pokokya, aset lain ga
dimasukin kalo ga ada interest nya
 Aset yield = interest income/earning aset
 Cost of funds = interest expense/interest bearing liabilities
 ROE = net income/total equity

Capitalization rasio

 CAR = total capital/risk weighted assets

 Tier-1 CAR = T1CAR/risk weighted assets (common equity biasanya)

Liquidity rasio

 Loan to deposit rasio LDR = total gross loan/total deposit

 LACA low cost deposit/total deposit

Method on banking valuation

1. DDM

Equity value = NPV of dividends

2. Justified Price to book ratio

Justified PBV = (ROEsus – Growthsus)/(Coe-Growthsus)

Growthsus = ROEsus x retention rasio

Excel Time

1. Business Driver : customer deposit. Estimated customer deposit first.

2. Estimate LDR rasio : mau tahu loans growth
3. Rasio2 lain bawahnya, bagaimana deposit tadi ditaruh di produk2 perbankan. (raw mat nya
kan uang -> dipake dimana saja.. ke BI, utang konsumen. Dari pecahan rasio tadi bisa jadi
growth
4. Formula Loans (dalam balance sheet) :
Total loans before provision-provisio
LDRxDeposit

Masuk ke Income Statement

1. Revenue = interest income-interest expense (sudah harus punya aset yield dulu - > dia driver
rasionya di aruh di sheets lain.) yield bakal dikali sama interest income buat driver
kedepannya.
2. Interest expense driver kedepannya pakai CoF
3. Net interest margin (NIM)
4. Other oprating income lihat history dan ngomong ke manajerial
5. Provision expense : etimate NPL duu (NPL/TLBProvision) ngebandingin pakai provisoning
6.